The recent addition of Bytecoin to Binance has not gone well. Deposits and withdrawals have been subject to severe delays and the price, at one point, was up 32x due to the low quantity of BCN available on the exchange.
According to Binance, the issue is with Bytecoin’s network. It released a statement saying that, “due to Bytecoin (BCN) network issues, deposits and withdrawals are experiencing severe delays” and that the “Bytecoin project team is working to resolve the issue.” It warned its users of “high price volatility” and recommended that they “trade with caution.”
Bytecoin issued its own statement saying that its network “is experiencing unusual high load” and that “transactions can be delayed, node synchronization can lag far behind.” Though they were working on fixing the issues, they asked BCN users to avoid making any transfers “until the situation is taken under control”.
Investors reacted badly to the news. One user, “didyeah”, spoke for many in saying,
when in such a situation where people are losing money, this is not exactly good enough. A good amount of trust flew through the window along with lots of profits.”
Binance CEO Zhao Changpeng took the unusual step on intervening personally in the issue, tweeting that Binance was “in communication with the Bytecoin team” and that traders should “expect high price volatility”.
We are in communication with the Bytecoin team regarding this issue. Hope it will be resolved soon. Expect high price volatility, trade with caution! https://t.co/w8hYCNMRiq
— CZ (@cz_binance) 8 May 2018
Pump and Dump?
Reddit users have not been shy in seeing something more sinister here than just technical issues. Reddit user “Satekroketje” described the issues as “one of the more sophisticated pump and dumps.” According to his analysis, Issues on the BCN network led to “investors are not actually able to sell their BCN on Binance”. The supply of available BCN on the exchange was low, “therefore it’s easy to pump up the price, all the way up to 32x it’s original price”. Prices on HitBTC and Poloniex rose by 150% too.
At time of writing the situation is so confused that CoinMarketCap is listing BCN’s price and marketcap as “?”.
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